2017 DVC Dues Announced Prior to Annual Meeting

[Deb & Bill]

Just got the email regarding the upcoming Annual Meeting with links to proposed budgets for my resorts (I only got OKW and BRV). But based on these increases, in ten years dues could be out of reach for many.

Projecting out to 2026 (10 years), using the same percent increase at OKW that we had this year (6.6%), dues will be $12.1369 per point. And you still have 16 years until 2042. Carry it out until 2042 and dues are $31.6414 per point.

I did the same at BRV (old VWL) with that increase of 5.3% and in ten years dues will be $10.7444 per point (except they will probably go up with the increase of villas to the property and additional shared costs (plus cost to staff, maintain, etc new pool area). At 2042, dues will be $24.5964 per point.

 

[DougEMG]

DVC news has the projected MF for all the resorts.

http://dvcnews.com/index.php/dvc-program/financial/3571-annual-dues-projections-for-2017-published

Not happy with how big the increase was at OKW and BWV

The only bright side is that SSR now has the lowest MF as BLT went up over 6%.

 

[_auroraborealis_]

Ouch.

 

[Deb & Bill]

All these new, young owners really need to understand that what they pay to buy into DVC is not the main cost. Their annual member fees are going to be a lot higher than they realize.

And the price to rent is also going to have to go up, up, up if you rent to pay your annual fees.

 

[loril13]

I guess I am grateful AKV and BCV "only" went up 2.5% averaged.

 

[ziravan]

I guess I am grateful AKV and BCV "only" went up 2.5% averaged.

I'm pleased about that. 0.7 at Poly, 2.35 at BCV, both the lowest increases at WDW.

Prob the best possible scenario for me.

 

[freediverdude]

I knew BLT wasn't going to stay that low. VGF is quickly catching up too, lol.

 

[disneynutz]

Doesn't make sense, VWL will be sharing services with the new DVC resort so the dues should go down, not up. The other resort in question is BWV compared to BCV, BWV has a 5.63% increase while BCV only has a 2.35% increase. I still think that BLT is playing catch up some how since the original dues while selling was set so low.

Bill

 

[CarolMN]

Doesn't make sense, VWL will be sharing services with the new DVC resort so the dues should go down, not up. .......(snip)...... Bill

The new DVC resort isn't online yet. I wouldn't expect any impact on VWL dues until the new resort is available for occupancy. Don't know if we have an estimated date for that yet.

 

[DougEMG]

Doesn't make sense, VWL will be sharing services with the new DVC resort so the dues should go down, not up. The other resort in question is BWV compared to BCV, BWV has a 5.63% increase while BCV only has a 2.35% increase. I still think that BLT is playing catch up some how since the original dues while selling was set so low.

Bill

I found the difference between the BWV and BCV increase quiet surprising. Will be interesting to see the details and what caused the big difference in increases.

 

[twinklebug]

VWL's hike may in part be due to the fact that the hotel currently has half the original number of rooms and therefore is paying on a smaller portion of the expenses.

I would expect that by 2018, a good portion of VWL's increase should be gone when CCC-VWL picks up its portion of the expenses. VWL may even see a reduction.

I'm not great at these number games though, particularly when all the parts are in motion.

 

[sndral]

Doesn't make sense, VWL will be sharing services with the new DVC resort so the dues should go down, not up. The other resort in question is BWV compared to BCV, BWV has a 5.63% increase while BCV only has a 2.35% increase. I still think that BLT is playing catch up some how since the original dues while selling was set so low.

Bill

I too suspect BLT is playing catch up as will Poly, after it's sold out.
A big difference between BWV & BCV is that BW is primarily DVC whereas BC/YC are primarily cash room rentals, so BCV's % of shared resort expenses would be lower. But if the cost to run the WDW resorts had all gone up then SSR & OKW which are both large DVC only resorts should logically have about the same MFs, but they don't.

 

[zavandor]

I too suspect BLT is playing catch up as will Poly, after it's sold out.

BLT started very low, the lowest MF of WDW and that has always been one of its selling points. That's why it's a bit suspicious that now they increase so much every year.
Poly, on the other hand, hasn't started low at all. Considering the high cost per night, I guess a Poly studio is one of the most expensive on property when factoring MF per night.

I'm glad this year SSR didn't increase as much as last year, when it was one of the highest % increase.

 

[CMNJ]

I found the difference between the BWV and BCV increase quiet surprising. Will be interesting to see the details and what caused the big difference in increases.

I'm curious if the conversion from 4 to 5 in the studios comes into play at all and if so if BCV will rise next year (or the year after) once the conversion is complete. If Disney splits the common area costs (pool, park transportation, bell services, etc) based on guest occupancy numbers in the villas vs the hotel side increasing the studio occupancy by 1 could be driving the higher BWV costs. Plus the direct costs of providing/laundering towels and bedding for the 5th guest and magical express.

 

[kristenrice]

Did HHI have no change at all, or is it just not listed yet? If what is shown is correct, I'm pretty excited since we own at AKV and HHI.

 

[drusba]

BWV went up about $.30 per point over last year, of which about $.16 is for estimated property taxes. AKV went up about $.17 with an about $.01 decline for property taxes. In other words, for operations and capital reserves, BWV came in $.04 less than AKV. Someone should check OKW, BLT, and Boulder Ridge (VWL) to see if property taxes (a/k/a ad valorem) are a big portion of their raises.

 

[DenLo]

Doesn't make sense, VWL will be sharing services with the new DVC resort so the dues should go down, not up. The other resort in question is BWV compared to BCV, BWV has a 5.63% increase while BCV only has a 2.35% increase. I still think that BLT is playing catch up some how since the original dues while selling was set so low.

Bill

I thought they base the costs on occupancy levels, BRV will still have the same occupancy it had before and CCV will only be adding the cabins to the occupancy figures as the lodge portion of CCV was already in the figures. So I doubt 26 or 28 cabins will really lower BRVs dues.

 

[Meandnevaeh]

Just got the email regarding the upcoming Annual Meeting with links to proposed budgets for my resorts (I only got OKW and BRV). But based on these increases, in ten years dues could be out of reach for many.

Projecting out to 2026 (10 years), using the same percent increase at OKW that we had this year (6.6%), dues will be $12.1369 per point. And you still have 16 years until 2042. Carry it out until 2042 and dues are $31.6414 per point.

I did the same at BRV (old VWL) with that increase of 5.3% and in ten years dues will be $10.7444 per point (except they will probably go up with the increase of villas to the property and additional shared costs (plus cost to staff, maintain, etc new pool area). At 2042, dues will be $24.5964 per point.

But it shouldn't go up 6% every year, some years will have higher increases than other years. You can't project it to be that high every year.

 

[skier_pete]

What I find interesting is we bought at AKV in 2014 - and people were all saying "AKV has the highest dues by far, don't buy there". Now the last 2 years AKV dues went up only 1.85% and 2.66%. Meanwhile BLT went up 4.6% and 6.4%. AKV is still the highest, but it's within a few cents of many of the other resorts now.

Also - the difference between my 160 points at AKV and 160 at SSR (which still has the lowest dues) is $112 a year. It just goes to prove the right place to buy is the place that makes you happiest. Dues are unpredictable. Personally I'm pretty happy whenever they go up less than 4 %.

But yes, you should factor this in when buying - dues WILL go up. So will park passes, airline tickets, food, and hotels. My dues went up $27 this year. Don't think that'll be my biggest expense increase on the next trip.

 

[_auroraborealis_]

I think what's happening with BLT and what will eventually happen with VGF and Poly can be extrapolated from the AUL "scandal" where Hawaii busted Disney for under-estimating dues vs. what it really costs to run the place., forcing DVD to update the dues to realistic numbers.

Only Florida doesn't do that.

DVD did a "teehee, that was our bad! We can't math!" when that happened with AUL, but... never was especially credible. I think it's pretty clear DVD can do the math quite nicely. I think they start with underestimates then have the dues catch up once they're not in live sales.

I also think this is more recent, and not what they've always done.